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Panaji, 24th August, 1972 (Bhadra 2, 1894) 


SERIES I No. 21 


OFFICIAL 


GAZETTE 


सत्यमेव जयते 


GOVERNMENT OF GOA , DAMAN AND DIU 


GOVERNMENT OF GOA , DAMAN 

AND DIU 


Sections 
13. Obligations of hirer to comply with agreement. 
14 . Obligation of hirer in respect of care to be taken of 

goods . 
15. Obligation of hirer in respect of use of goods . 
16. Obligation of hirer to give information as to where 

abouts of goods . 
17. Rights of hirer in case of seizure of goods by owner . 


Law and Judicial Department 


Notification 


CHAPTER V 


Rights and obligations of the owner 


LD / 2784 / 72 


The Hire Purchase Act, 1972 (26 of 1972 ) , the 
General Insurance ( Emergency Provisions) Amend 
ment Act, 1972 ( 27 of 1972 ), the National Service 
Act, 1972 ( 28 of 1972 ) , the Constitution ( Twenty 
Ninth Amendment) Act, 1972 which were recently 
passed by the Parliament and assented to by the 
President of India are hereby published for general 
information of the public . 


18. Rights of owner to terminate hire -purchase agree 

ment for default in payment of hire or unauthorised 

act or breach of express conditions . 
19. Rights of owner on termination . 
20. Restriction on owner s right to recover possession of 

goods otherwise than through court. 
21. Relief against termination for non -payment of hire . 
22. Relief against termination for unauthorised act or 

breach of express condition . 
23. Obligation of owner to supply copies and information . 


M. S. Borkar , Under Secretary . 


CHAPTER VI 
Misceilaneous 


Panaji, 26th July , 1972 . 


same 


The Hire Purchase Act, 1972 


24. Discharge of price otherwise than by payment of 

money . 
25. Insolvency of hirer , etc. 
26. Successive hire - purchase agreements between 

parties. 
27. Evidence of adverse detention in suit or application 

to recover possession of goods . 
28. Hirer s refusal to surrender goods not to be conversion 

in certain cases . 
29.. Service of notice . 
30. Power to exempt from provisions of sections 6 , 9, 10 , 

12 and 17 in certain cases . 
31. Act not to apply to existing agreements. 


ARRANGEMENT OF SECTIONS 


CHAPTER I 
Preliminary 


Sections 

1. Short title , extent and commencement. 
2. Definitions . 


The Hire-Purchase Act, 1972 


AN 


CHAPTER II 
Form and contents of hire -purchase agreements 
3. Hire- purchase agreements to be in writing, and signed 

by parties thereto . 
4. Contents of hire -purchase agreements . 
5. Two or more agreements when treated as a single 

hire -purchase agreement . 


ACT 


to define and regulate the rights and duties of 

parties to hire -purchase agreements and for mat 
ters connected therewith or incidental thereto . 


Be it enacted by Parliament in the Twenty -third 
Year of the Republic of India as follows : - 


CHAPTER III 
Warranties and conditions , limitation on hire 

-purchase charges and passing of property 
6. Warranties and conditions to be implied in hire -pur 

chase agreements. 
7. Limitation on hire -purchase charges. 
8. Passing of property . 


CHAPTER I 


Preliminary 


CHAPTER IV 
Rights and obligations of the hirer 
9. Right of hirer to purchase at any time with rebate . 
10. Right of hirer to terminate agreement at any time. 
11. Right of hirer to appropriate payments in respect of 

two or more agreements . 
12. Assignment and transmission of hirer s right or interest 

under hire -purchase agreement. 


1. Short title , extent and commencement. ( 1 ) 
This Act may be called the Hire -purchase Act, 1972 . 

( 2 ) It extends to the whole of India except the 
State of Jammu and Kashmir . 

( 3 ) It shall come into force on such date as the 
Central Government may , by notification in the 
Official Gazette, apoint. 


362 


SERIES I No. 21 


(6 ) signed by all the parties thereto . 
( 2 ) A hire -purchase agreement shall be void if in 
respect thereof any of the requirements specified 
in sub -section ( 1 ) has not been complied with . 

(3 ) Where there is a contract of guarantee, the 
hire -purchase agreement shall be signed by the su 
rety also , and if the hire -purchase agreement is not 
so signed , the hire -purchase agreement shall be voi 
dable at the option of the owner . 


4. Contents of hire- purchase agreements . ( 1 ) 
Every hire - purchase agreement shall state -- 

(a ) the hire -purchase price of the goods to 
which the agreement relates ; 

(b ) the cash price of the goods, that is to say , 
the price at which the goods may be purchased by 
the hirer for cash ; 

( c ) the date on which the agreement shall be 
deemed to have commenced ; 

( d ) the number of instalments by which the 
hire -purchase price is to be paid , the amount of 
each of those instalments , and the date , or the 
mode of determining the date , upon which it is 
payable, and the person to whom and the place 
where it is payable ; and 

(e ) the goods to which the agreement relates , 
in a manner sufficient to identify them . 


P 


2. Definitions. In this Act, unless the context 
otherwise requires , 

( a ) " contract of guarantee" , in relation to any 
hire- purchase agreement, means a contract whe 
reby a person in this Act referred to as the 
surety ) guarantees the performance of all or any 
of the hirer s obligations under the hire -purchase 
agreement ; 

(8 ) " hire” means the sum payable periodically 
by the hirer under a hire -purchase agreement ; 

(c ) " hire- purchase agreement” means an agree 
ment under which goods are let on hire and under 
which the hirer has an option to purchase them 
in accordance with the terms of the agreement 
and includes an agreement under which — 

( i) possession of goods is delivered by the 
owner thereof to a person on condition that such 
person pays the agreed amount in periodical 
instalments , and 

(ii ) the property in the goods is to pass to 
such person on the payment of the last of such 
instalments , and 

( iii ) such person has a right to terminate 
the agreement at any time before the property 
so passes ; 

( d ) " hire - purchase price " means the total sum 
payable by the hirer under a hire -purchase agree 
ment in order to complete the purchase of , or 
the acquisition of property in , the goods to which 
the agreement relates ; and includes any sum so 
payable by the hirer under the hire -purchase 
agreement by way of a deposit or other initial 
payment, or credited or to be credited to him under 
such agreement on account of any such deposit 
or payment , whether that sum is to be cr has 
been paid to the owner or to any other person 
or is to be or has been discharged by payment 
of money or by transfer or delivery of goods or 
by any other means ; but does not include any 
sum payable as a penalty or as compensation or 
damages for a breach of the agreement; 

( e ) " hirer " means the person who obtains or 
has cbtained possession of goods from an owner 
under a hire - purchase agreement, and includes 
a person to whom the hirer s rights or liabilities 
under the agreement have passed by assignment 
or by operation of law ; 

( f) " owners" means the person who lets or has 
let , delivers or has delivered possession of goods, 
to a hirer under a hire - purchase agreement and 
includes a person to whom the owner s property 
in the goods or any of the owner s rights or liabi 
lities under the agreement has passed by assign 
ment or by operation of law ; 

( g ) each of the words and expres 
sions used and not defined in this Act 
but defined in the Indian Contract Act , 
1872 or the Sale of Goods Act, 1930 9 of 1872 . 
shall have the meaning assigned to it 

3 of 1930 . 
in that Act . 


( 2 ) Where any part of the hire- purchase price is , 
or is to be , paid otherwise than in cash cr by cheque, 
the hire - purchase agreement shall contain a descrip 
tion of that part of the hire -purchase price . 

( 3 ) Where any of the requirements specified in 
sub - section ( 1 ) or sub -section ( 2 ) has not been ccm 
plied with , the hirer may institute a suit for getting 
the hire -purchase agreement rescinded ; and the court 
may, if it is satisfied that the failure to comply with 
any such requirement has prejudiced the hirer , res 
cind the agreement on such iterms as it thinks just, 
or pass such other order as it thinks fit in the cir 
cumstances of the case . 


5. Two or more agreements when treated as a sin 
gle hire- purchase agreement . -- Where by virtue of 
two or more agreements in writing, none of which by 
itself constitutes a hire -purchase agreement , there 
is a bailment of goods and the bailee has an option 
to purchase the goods and the requirements of sec 
tion 3 and section 4. are satisfied in relation to such 
agreements , the agreements shall be treated for the 
purposes of this Act as a single hire- purchase agree 
ment made at the time when the last of the agree 
ments was made . 


CHAPTER III 


CHAPTER II 


Form and contents of hire purchase agreements 


Warranties and conditions, limitation on hire-purchase 

charges and passing of property 
6. Warranties and conditions to be implied in hire 
purchase agreements . -- ( 1 ) Notwithstanding any 
thing contained in any contract , in every hire - pur 
chase agreement there shall be an implied warranty 

( a ) that the hirer shall have and enjoy quiet 
possession of the goods ; and 

(6 ) that the goods shall be free from any charge 
or encumbrance in favour of any third party at 
the time when the property is to pass . 


3. Hire - purchase agreements to be in writing and 
signed by parties thereto.-- ( 1 ) Every hire- pur 
chase agreement shall be 

(a ) in writing , and 


363 


24TH AUGUST, 1972 ( BHADRA 2 , 1894 ) 


( 2 ) Notwithstanding anything contained in any 
contract , in every hire -purchase agreement there 
shall be 

( a ) an implied condition on the part of the owner 
that he has a right to sell the goods at the time 
when the property is to pass ; 

( b ) an amplied condition that the goods shall be 
of merchantable quality , but no such condition 
shall be implied by virtue of this clause - 

( i ) as regards defects of which the owner 
could not reasonably have been aware at the 
time when the agreement was made , or 

( ii ) as regards defects specified in the agree 
ment (whether referred to in the agreement as 
defects or by any other description to the like 
effect ) , or 

( iii) where the hirer has examined the goods , 
or a sample thereof, as regards defects which 
the examination ought to have revealed , cr 

( iv ) if the goods are second -hand goods and 
the agreement contains a statement to that 

effect. 
( 3 ) Where the hirer , whether expressly or by im 
plication , 

( a ) has made known ito the owner the particular 
purpose for which the goods are required , or 

(b ) in the course of any antecedent negotia 
tions, has made that purpose known to any other 
person by whom those negotiations were con 
ducted , 


the amount of the hire- purchase instalment bears 
to the total amount of hire -purchase price ; 

(6 ) " deposit” means any sum payable by the 
hirer under the hire- purchase agreement by way 
of deposit or other initial payment or credited or 
to be credited to him under the agreement on 
account of any such deposit or payment , whether 
that sum is to be or has been discharged by pay 
ment of money or by transfer or delivery of goods 
or by any other means ; 

( c ) " net cash price " , in relation to goods com 
prised in a hire -purchase agreement, means the 
cash price of such goods as required to be specified 
in the hire -purchase agreement under clause (5 ) 
of sub -section ( 1) of section 4 , less any deposit as 
defined in clause ( b ) ; 

( d ) “ net hire- purchase charges ” , in relation to 
a hire -purchase agreement for any goods , means 
the difference between the net hire -purchase price 
and the net cash price of such goods ; 

( e ) " net hire- purchase price ” , in relation to 
goods comprised in a hire- purchase agreement , 
means the total amount of hire- purchase price of 
such goods as required to be specified in the hire 
purchase agreement under clause (a ) of sub - sec 
tion ( 1) of section 4 less , 

( i) any amount which is payable to cover the 
expenses of delivering the goods or any of them 
to or to the order of the hirer and which is 
specified in the agreement as included in the 
hire - purchase price ; 

( ii ) any amount which is payable to cover 
registration or other fees under any law in res 
pect of the goods or the agreement or both and 
which is specified in the agreement as included 
in the hire - purchase price ; and 

(iii) any amount which is payable for insu 
rance (other than third party insurance ) in res 
pect of the goods and which is specified in the 
agreement as included in the hire -purchase 
price ; 

(f) " statutory charges" , in relation to a hire 
purchase agreement , means the aggregate of the 
amounts calculated in accordance with the provi 
sions of sub -section ( 2 ) as statutory charges 
in respect of each of the cash price instalments 
corresponding to each of the hire - purchase instal 
ments under the agreement . 

( 2 ) The statutory charges, in respect of a cash 
price instalment, shall be an amount calculated at 
the rate of thirty per centum per annum or , if a 
lower rate is specified under sub -section ( 3 ) , at such 
lower rate , in accordance with the following for 
mula : 

CIXRXT 
C = -- 

100 
where, --SC - represents the statutory charges ; 

CI, represents the amount of cash 

price instalment expressed in 

rupees or fraction of rupees . 
R - represents the rate ; and 
T - represents the time, expressed in 

years and fractions of years , 
that elapses between the date of 
the agreement and the date on 
which the hire -purchase intal 


there shall be an implied condition that the goods 
shall be reasonably fit for such purpose . 

( 4 ) Where the goods are let under a hire - purchase 
agreement by reference to a sample there shall be 

( a ) an implied condition on the part of the 
owner that the bulk will correspond with the sam 
ple in quality , and 

( b ) an implied condition on the part of the 
owner that the hirer will have a reasonable 

oppor 
tunity of comparing the bulk with the sample. 

(5 ) Where the goods are let under a hire- purchase 
agreement by description there shall be an implied 
condition that the goods will correspond with the 
description ; and if the goods are let under the agree 
ment by reference to a sample as well as by descrip 
tion , it shall not be sufficient that the bulk of the 
goods correspond with the sample if the goods do 
not also correspond with the description . 

(6 ) An owner shall not be entitled to rely on any 
provision in a hirepurchase agreement excluding or 
modifying the condition set out in sub -section ( 3 ) 
unless he proves that before the agreement was made 
the provision was brought to the notice of the hirer 
and its effect made clear to him . 

( 7 ) Nothing in this section shall prejudice the 
operation of any other enactment or rule of law whe 
reby any condition or warranty is to be implied in 
any hire -purchase agreement. 


C 


7. Limitation on hire - purchase charges . - ( 1) In 
this section , 

( a ) " cash price instalment ” , in relation to hire 
-purchase instalment, means an amount which 
bears to the net cash price the same proportion as 


364 


SERIES I No. 21 


ment corresponding to the cash contained in the hire -purchase agreement, but where 
price instalment is payable un the terms of the agreement entitle the hirer to a 
der the agreement. 

rebate higher than that allowed by this section , the 

hirer shall be entitled to the rebate provided by the 
( 3 ) The Central Government may, by notification agreement. 
in the Official Gazette , and after consultation with 
the Reserve Bank of India , specify the rate per 10. Right of hirer to terminate agreement at any 
centum per annum , being a rate which shall not be time. — ( 1 ) The hirer may, at any time before the 
less than ten per centum per annum , at which statu final payment under the hire- purchase agreement 
tory charges may be calculated under , sub - sec 

- falls due, and after giving the owner not less than 
tion ( 2 ) and different rates may be so specified in : fourteen days notice in writing of his intention so 
respect of hire - purchase agreements relating to diffe to do and re - delivering or tendering the goods to the 
rent classes or sub - classes of goods. 

owner , terminate the hire - purchase agreement by 

payment or tender to the owner of the amounts 
( 4 ) Where the net hire - purchase charges in rela 

which have accrued due towards the hire -purchase 
üion to a hire - purchase agreement exceed the sta 

price and have not been paid by him , including the 
tutcry charges in relation ito such agreement calcu 
lated in accordance with the provisions of sub -sec 

sum , if any , which he is liable to pay under sub 

-secticn ( 2 ) . 
tion ( 2 ) , the hirer may , by notice in writing to the 
owner, either elect to treat the agreement as void or ( 2 ) Where the hirer terminates the agreement 
to have his liability reduced by the amount by which under sub -section ( 1) , and the agreement provides 
the net hire -purchase charges exceed the statutory for the payment of a sum named on account of such 
charges aforesaid . 

termination , the liability of the hirer to pay that 
(5 ) Where a hirer elects , in accordance with the 

sum shall be subject to the following conditions, 
provisions of sub - section ( 4 ) , to treat the hire 

namely : — 
purchase agreement as void , the agreement shall be ( a ) where the sum total of the amounts paid 
void , and the amount paid or provided whether by and the amounts due in respect of the hire -pur 
cash , cheque or other consideration , by or on behalf chase price immediately before the termination 
of the hirer in relation to the agreement shall be exceeds one -half of the hire - purchase price, the 
recoverable by the hirer as a debt due to him by the hirer shall not be liable to pay the sum so named ; 
Owner . 

(b ) where the sum total of the amounts paid 
(6 ) Where the hirer elects to have his liability 

and the amounts due in respect of the hire - pur 
reduced by the amount referred to in sub - section ( 4 ) , chase price immediately before the termination 
his liability shall be reduced by that amount and does not exceed one-half of the hire -purchase price , 
that amount may be set off by the hirer against the the hirer shall be liable to pay the difference 
amount that would otherwise be due under the between the said sum total and the said one -half , 
agreement and, to the extent to which it is not so or the sum named in the agreement, whichever 
set off, may be recovered by the hirer as a debt due is less . 
to him by the owner . 

( 3 ) Nothing in sub -section ( 2 ) shall relieve the 

hirer from any liability for any hire which might 
8. Passing of property . — Subject to the provi 

have accrued due before the termination . 
sions of this Act, the property in the goods to which 
a hire- purchase agreement relates shall pass to the (4 ) Any provision in any agreement , whereby the 
hirer only on the completion of the purchase in the right conferred on a hirer by this section to termi 
manner provided in the agreement. 

nate the hire - purchase agreement is excluded or 

restricted , or whereby any liability in addition to 
CHAPTER IV 

the liability imposed by this Act is imposed on a 
Rights and obligations of the hirer 

hirer by reason of the termination of the hire - pur 

chase agreement by him under this section , shall be 
9. Right of hirer to purchase at any time with void . 
rebate . ( 1 ) The hirer may, at any time during the 
continuance of the hire- purchase agreement and 

(5 ) Nothing in this section shall prejudice any 

right of a hirer to terminate a hire -purchase agree 
after giving the owner not less than fourteen days 
notice in writing of his intention so to do , complete 

ment otherwise than by virtue of this section . 
the purchase of the goods by paying or tendering 
to the owner the hire -purchase price or the balance 

11. Right of hirer to appropriate payments in res 
thereof as reduced by the rebate calculated in the pect of two or more agreements . --- A hirer who is 
manner provided in sub -section ( 2 ) . 

liable to make payments in respect of two or more 

hire- purchase agreements to the same owner shall, 
( 2 ) The rebate for the purposes of sub -section ( 1) 

notwithstanding any agreement to the contrary , be 
shall be equal to two- thirds of an amount which 

entitled , on making any payment in respect of the 
bears to the hire -purchase charges the same propor 

agreements which is not sufficient to discharge the 
tion as the balance of the hire - purchase price not total amount then due under all the agreements to 
yet due bears to the hire -purchase price . 

appropriate the sum so paid by him in or towards 

the satisfaction of the sum due under any one of the 
Explanation . — In this sub -section , " hire - prchase 

agreements , or in or towards the satisfaction of the 
charges " means the difference between the hire - pur 

sums due under any two or more of the agreements 
chase price and the cash price as stated in the 

in such proportions as he thinks fit , and, if he fails 
hire -purchase agreement. 

to make any such appropriation as aforesaid , the 
( 3 ) The provisions of this section shall have sum so paid shall, by virtue of this section , stand 
effect notwithstanding anything to the contrary appropriated towards the satisfaction of the sums 


O 


-24TH AUGUST, 1972 ( BHADRA 2 , 1894 ) 


365 


due under the respective hire -purchase agreements 
in the order in which the agreements were entered 
into . 


12. Assignment and transmission of hirer s right 
or interest under hire - purchase agreement. — ( 1 ) 
The hirer may assign his right, title and interest 
under the hire -purchase agreement with the con 
sent of the owner , or , if his consent is unreasonably 
withheld , without his consent . 

(2 ) Except as otherwise provided in this section , 
no payment or other consideration shall be required 
by an owner for his consent to an assignment under 
sub- section ( 1 ) , and where an owner requires any 
such payment or other consideration for his con 
sent, that consent shall be deemed to be unreason 
ably withheld . 

( 3 ) Where on a request being made by a hirer 
in this behalf the owner fails or refuses to give his 
ccnsent to an assignment under sub -section ( 1 ) the 
hirer may apply to the court for an order declaring 
that the consent of the owner to the assignment has 
been unreasonably withheld , and where such an order 
is made the consent shall be deemed to be unreason 
ably withheld . 


14. Obligation of hirer in respect of care to be 
taken of goods. ( 1 ) A hirer in the absence of a 
contract to the contrary , — 

(a ) shall be bound to take as much care of 
the goods to which the hire -purchase agreement 
relates as a man of ordinary prudence would , 
under similar circumstances , take of his own 
goods of the same bulk , quality and value ; 

(6 ) shall not be responsible for the loss , des 
truction or deterioration of the goods, if he has 
taken the amount of care thereof described in 
clause ( a ) . 

( 2 ) The hirer shall be liable to make compensa 
tion to the owner for any damage caused by failure 
to take care cf the goods in accordance with the pro 
visions of sub -section ( 1 ) . 


0 


Explanation . In this sub -section , " court " means 
a court which would have jurisdiction to entertain 
a suit for the relief claimed in the application . 


( 4 ) As a condition of granting such consent, the 
owner may stipulate that all defaults under the hire 
-purchase agreement shall be made good and may 
require the hirer and the assignee to execute and 
deliver to the owner an assignment agreement, in 
a form approved by the owner , whereby, without af 
fecting the continuing personal liability of the hirer 
in such respects, the assignee agrees with the owner 
to be personally liable to pay the instalments of 
hire remaining unpaid and to perform and observe 
all other stipulations and conditions of the hire -pur 
chase agreement during the residue of the term 
thereof and whereby the assignee indemnifies the 
hirer in respect of such liabilities . 

( 5 ) The right, title and interest of a hirer under 
a hire- purchase agreement shall be capable of pas 
sing by operation of law to the legal representative 
of the hirer but nothing in this sub- section shall 
relieve the legal representative from compliance with 
the provisions of the hire -purchase agreement . 


15. Obligation of hirer in respect of use of goods . 
- If the hirer makes any use of the gocds to which 
the hire - purchase agreement relates which is not 
according to the conditions of the agreement, the 
hirer shall be liable to make compensation to the 
owner for any damage arising to the goods from or 
during such use . 

16. Obligation of hirer to give information as to 
whereabouts of goods. — ( 1) Where by virtue of a 
hire -purchase agreement a hirer is under a duty to 
keep in his possession or control the goods to which 
the agreement relates , the hirer shall , on receipt 
of a request in writing from the owner , inform the 
owner where the goods are at the time when the 
information is given or , if it is sent by posit , at the 
time of posting . 

( 2 ) If the hirer fails withcut reasonable cause to 
give the said information within fourteen days of 
the receipt of the notics , he shall be punishable with 
fine which may extend to two hundred rupees . 

17. Rights of hirer in case of seizure of goods by 
owner. ( 1 ) Where the owner seizes under clause 
( c ) of section 19 the goods let under a hire - purchase 
agreement, the hirer may recover from the owner 
the amount, if any , by which the hire - purchase price 
falls short of the aggregate of the following amounts , 
namely : - 

(i ) the amounts paid in respect of the hire- pur 
chase price up to the date of seizure ; 

(ii) the value of the goods on the date of sei 
zure ; 

(2 ) For the purposes of this section , the value 
cf any goods on the date of seizure is the best price 
that can be reasonably obtained for the goods by 
the owner on that date less the aggregate of the 
following amounts , namely : 

(i) the reasonable expenses incurred by the 
owner for seizing the goods ; 

(ii) any amount reasonably expended by the 
owner on the storage , repairs or maintenance of 
the goods ; 

( iii) (whether or not the goods have subse 
quently been sold cr otherwise disposed of by the 
owner ) the reasonable expenses of selling or 
otherwise disposing of the goods ; and 

( iv ) the amount spent by the owner for pay 
ment of arrears of taxes and other dues which 
are payable in relation to the goods under any 
law for the time being in force and which the 
hirer was liable to pay . 


Explanation . — In this sub - section , the 
expression " legal representative" has the 
same meaning as in clause ( 11 ) of sec 
tion 2 of the Code of Civil Procedure, 
1908 . 


5 of 1908 


(6 ) The provisions of this section shall apply 
notwithstanding anything to the contrary contained 
in the hire -purchase agreement. 


13. Obligations of hirer to comply with agreement. 
- Subject to the provisions of this Act, a hirer shall 
be bound 

( a ) to pay the hire in accordance with the 
agreement, and 

(b ) otherwise to comply with the terms of the 
agreement. 


366 


SERIES I No. 21 


( 3 ) If the owner fails to pay the amount due from 
him under the provisions of this section or any por 
tion of such amount, to the hirer within a period 
of thirty days from the date notice for the payment 
of the said amount is served on him by the hirer the 
owner shall be liable to pay interest on such amount 
at the rate of twelve per cent per annum from the 
date of expiry of the said period of thirty days . 

( 4 ) Where the owner has sold the goods seized by 
him the onus of proving that the price obtained by 
him for the goods was the best price that could be 
reasonably obtained by him on the date of seizure 
shall lie upon him . 


( a ) subject to the provisions of section 21 and 
section 22 , to recover possession of the goods 
by application under section 29 or by suit ; 

( e ) without prejudice to the provisions of sub 
section ( 2 ) of section 14 and of section 15 , 
to damages for non - delivery of the goods, from 
the date on which termination is effective, to the 
date on which the goods are delivered to or 
seized by the powner . 


CHAPTER. V 


20. Restriction on owner s right to recover pos 
session of goods otherwise than through court .-- ( 1 ) 
Where goods have been let under a hire - purchase 
agreement and the statutcry proportion of the hire 
-purchase price has been paid , whether in pursuance 
cf the judgment of a court or otherwise , or tendered 
by or on behalf of the hirer or any surety , the owner 
shall not enforce any right to recover possession of 
the gocds from the hirer otherwise than in accord 
ance with sub - section ( 3 ) or by suit . 


. 


o 


Rights and obligations of the owner 
18. Rights of owner to terminate hire -purchase 
agreement for defauit in payment of hire or unautho 
rised act or breach of express conditions. ( 1 ) 
Where a hirer makes more than one default in the 
payment of hire as provided in the hire-purchase 
agreement then , subject to the provisions of sec 
tion 21 and after giving the hirer notice in writing 
of not less than 

( i) one week , in a case where the hire is payable 
at weekly or lesser intervals ; and 

( ii ) two weeks, in any other case , 
the owner shall be entitled to terminate the agree 
ment by giving the hirer notice of termination in 
writing : 

Provided that if the hirer pays or tenders 
owner the hire in arrears together with such in 
terest thereon as may be payable under the terms 
of the agreement before the expiry of the said period 
of one week or , as the case may be, two weeks, the 
owner shall not be entitled to terminate the agree 
ment. 


( 2 ) Where a hirer . 

( a ) does any act with regard to the goods to 
which the agreement relates which is inconsistent 
with any of the terms of the agreement; or 

(6 ) breaks an express condition which provides 
that, on the breach thereof , the owner may termi 

nate the agreement , 
the owner shall , subject to the provisions of section 
22 , be entitled to terminate the agreement by giving 
the hirer notice of termination in writing . 


Explanation . In this section , " statutory propor- 
tion " means, 

( i ) one-half , where the hire -purchase price is 
less than fifteen tihousand rupees ; and 

( ii ) three- fourths, where the hire- purchase price 
is ncit less than fifteen thousand rupees : 

Provided that in the case of mctor vehi 
cles as defined in the Motor Vehicles 
Act, 1999, " statutory proportion " shall 

4 of 1939. 
mean , 

( 1 ) one -half, where the hire -purchase price is less 
than five thousand rupees ; 

( ii ) three - fourths , where the hire -purchase price 
is not less than five thousand rupees but less than 
fifteen thousand rupees ; 

( iii ) three -fourths or such higher proportion nct 
exceeding nine -tenths as the Central Government 
may, by notification in the Official Gazette, spe 
cify, where the hire -purchase price is not less than 
fifteen thousand rupees . 

( 2 ) If the owner recovers possessicn of gcods in 
contravention of the provisions of sub -section ( 1 ) , 
the hire -purchase agreement , if not previously ter 
minated , shall terminate , and ---- 

( a ) the hirer shall be released from all liability 
under the agreement and shall be entitled to re 
cover from the owner all sums paid by the hirer 
under the agreement or under any security given 
by him in respect thereof ; and 

(b ) the surety shall be entitled to recover from 
the owner all sums paid by him under the contract 
of guarantee or under any security given by him 
in respect thereof . 

( 3 ) Where , by virtue of the provisions of sub - sec 
tion ( 1 ), the owner is precluded from enforcing a 
right to recover possession of the goods, he may 
make an applicaticn for recovery of possession of the 
goods to any court having jurisdiction to entertain 
a suit for the same relief. 

( 4 ) The provisions of this section shall nct apply 
in any case in which the hirer has terminated the 
agreement by virtue of any right vested in him . 


19. Rights of owner on termination . -- Where a 
hire -purchase agreement is terminated under this 
Act , then the owner shall be entitled , 

( a ) to retain the hire which has already been 
paid and to recover the arrears of hire due : 

Provided that when such goods are seized by 
the owner , the retention of hire and recovery of 
the arrears of hire due shall be subject to the 
provisions of section 17 ; 

(b ) subject to the conditions specified in clause 
( a ) and (b ) of sub - section (2 ) of section 10 , to 
forfeit the initial deposit , if so provided in the 
agreement ; 

(c ) subject to the provisions of section 17 and 
section 20 and subject to any contract to the con 
trary , to enter the premises of the hirer and seize 
the goods ; 


21. Relief against termination for non - payment of 
hire . Where the owner , after he has terminated 
the hire- purchase agreement in accordance with the 


Dowww 


WWW.MY 


24TH AUGUST, 1972 ( BHADRA 2 , 1894 ) 


367 


provisions of sub - section ( 1 ) of secticn 18 , institutes 
a suit or makes an application against the hirer for 
the recovery of the goods , and at the hearing of the 
suit cr application , the hirer pays or tenders to the 
owner the hire in arrears, together with such interest 
thereon as may be payable under the terms of the 
agreement and the cost of the suit or application in 
curred by the owner arid complies with such other 
conditions, if any, as the court may think fit to 
impose , the court may, in lieu of making a decree or 
order for specific delivery , pass an order relieving 
the hirer agairst the terminations; and thereupon the 
hirer shall continue in possession of the goods as if 
the agreement had not been terminated . 


contract of guarantee relating to the agreement, 
or to enforce any right to recover the goods from 
the hirer ; and 

( b ) no security given by the hirer in respect 
cf money payable under the agreement or given 
by a surety in respect of money payable under 
such a contract of guarantee as aforesaid shall be 
enforceable against the hirer or the surety by any 
holder thereof , 


and , if the default continues for a period of two 
months , the owner shall be punishable with fine 
which may extend to two hundred rupeesi. 

(4 ) Nothing in sub - section ( 3 ) shall be construed 
as affecting the right of a third -party to enfcrce 
against the owner or hirer or against both the owner 
and the hirer any charge cr encumbrance to which 
the goods covered by the hire- purchase agreement 
are subject. 


CHAPTER VI 


22. Relief against termination for rinauthorised 
act or breach of express condition . - Where a hire 
purchase agreement has been terminated in accord 
ance with the provisions of clause (a ) or clause ( 5 ) 
cf sub - section (2 ) of section 18 , no suit or applica 
tion by the owner against the hirer for the recovery 
of the goods shall lie unless and until the owner has 
served on the hirer a notice in writing , 

( a ) specifying the particular breach or act com 
plained of ; and 

(b ) if the breach cr act is capable of remedy, 
requiring the hirer to remedy it, 
and the hirer fails , within a period of thirty days 
from the date of the service of the notice , to remedy 
the breach or act if it is capable of remedy . 


Miscellaneous 


o 


24. Discharge of price otherwise than by payment 
of money . - Where an owner has agreed that any 
part of the hire -purchase price may be discharged 
otherwise than by the payment of money , any such 
discharge shall , for the purposes of section 10 , sec 
tion 11 , section 17 , section 20 and section 23 , be 
deemed to be a payment of that part of the hire - pur 
chase price . 


- 


23. Obligation of owner to supply copies and infor 
mation . ( 1) It shall be the duty of the owner to 
suply , free of cost, a true copy of the hire -purchase 
agreement, signed by the owner , — 

(a ) to the hirer, immediately after execution of 
the agreement ; and 

( b ) where there is a contract of guarantee, to 
the surety, on demand made at any time before 
the final payment has been made under the agree 
ment. 


25. Insolvency of hirer , etc. -- ( 1) Where , during 
the continuance of the hire - purchase agreement, the 
hirer is adjudged insolvent under any law with res 
pect to insolvency for the time being in force , the 
Official Receiver or where the hirer is a company , 
then in the event of the company being wound up , 
the liquidator , shall have , in respect of the goods 
which are in the possession of the hirer under the 
agreement , the same rights and obligations as the 
hirer had in relation thereto . 


( 2 ) It shall also be the duty of the owner , at any 
time before the final payınent has been made under 
the hire- purchase agreement, to supply to the hirer , 
within fourteen days after the owner receives a re 
quest in writing from the hirer in this behalf and 
the hirer tenders to the cnwer the sum of one rupee 
for expenses , a statement signed by the owner cr 
his agent showing - 

(a ) the amount paid by or on behalf of the hirer ; 

(b ) the amount which has become due under 
the agreement but remains unpaid , and the date 
upon which each unpaid instalment became due , 
and the amount of each such instalment ; and 

( c ) the amount which is to become payable 
under the agreement , and the date or the mode of 
determining the date upon which each future ins 
talment is to become payable , and the amount of 
each such instalment. 


( 2 ) The Official Receiver or the liquidator , as the 
case may be, may , with the permission of the Insol 
vency Court or the court in which the winding up 
proceedings are pending , assign the rights of the 
hirer under the agreement, to any other person , and 
the assignee shall have all the rights and be subject 
to all the obligations of the hirer under the agree 
menc. 


Explanation . In this section , " Offi 
cial Keceiver " means an Official Receiver 
appointed under the Provincial Insolvency 
Act, 1920 , and inciudes any person hoid 
ing a similar office under any other law 
with respect to insolvency for the time 
being in force . 


5 of 1920 . 


( 3 ) Where there is a failure without reascuable 
cause to carry out the duties impcsed by sub - sec 
tion ( 1 ) , or sub -section ( 2 ) , then , while the default 
continues, --- 

( a ) the owner shall not be entitled to enforce 
the -agreement against the hirer or to enforce any 


26. Successive hire- purchase agreements between 
same parties . — Where goods have been let under a 
hire -purchase agreement, and at any time thereafter 
the owner makes a subsequent hire -purchase agree 
ment with the hirer , whether relating exclusively to 
other goods or to other goods together with the 


368 


SERIES I No. 21 


-- 


The General Insurance ( Emergency Provisions) 

Amendment Act, 1972 


goods to which the first agreement relates , any such 
subsequent hire -purchase agreement shall not have 
effect in so far as it affects prejudicially any right 
which the hirer would have had by virtue of sec 
tion 20 under the first agreement, if such subse 
quent hire -purchase agreement had not been made . 


AN 


ACT 


to amend the General Insurance ( Emergency Pro 

visions ) Act , 1971 . 


27. Evidence of adverse detention in suit or appli 
cation to recover possession of goods . — ( 1 ) Where , 
in a suit or application by an owner of goods which 
have been let under a hire -purchase agreement , to 
enforce a right to recover possession of the goods 
from the hirer , the owner proves that , beiore the 
commencement of the suit or application and after 
the right to recover possession of the goods accrued , 
the owner made a request in writing in the hirer to 
surrender the goods , the hirer s possession of the 
goods shall , for the purpose of the owner s claim to 
recover possession thereof, be deemed to be adverse 
to the owner . 

(2 ) Nothing in this section shall affect a claim 
for damages for conversion . 


Be it enacted by Parliament in the Twenty -third 
Year of the Republic of India as follows: 

1. Short title and commencement . ( 1 ) This Act 
of 1971. - In the General Insurance ( Emergency 
Provisions) Amendment Act , 1972 . 

( 2 ) It shall be deemed to have come into force 
on the 13th day of May, 1971. 


2. Insertion of new section 4A and 4B in Act 17 
of 1971. — In the General Insurance ( Emergency 
Provisions ) Act , 1971 (hereinafter referred to as . 
the principal Act) , after section 4 , the following 
sections shall be inserted , namely : — 


28. Hirer s refusal to surrender goods not to be 
version in certain cases . If , during the subsistence 
of any restriction to which the enforcement by an 
owner of a right to recover possession of goods from 
a hirer is subject by virtue of this Act, the hirer 
refuses to give up possession of the goods to the 
owner , the hirer shall not, by reason only of such 
refusal, be liable to the owner for conversion of the 
goods. 


- 


NAV 


29. Service of notice . Any notice required or 
authorised to be served on or given to an owner or 
a hirer under this Act may be so served or given 

(a ) by delivering it to him personally ; or 

(b ) by sending it by post to him at his last 
known place of residence or business . 


30. Power to exempt from provisions of sections 
6 , 9, 10 , 12 and 17 in certain cases , Where the 
Central Government is satisfied that having regard 
to 

( a ) the short supply of any goods or class of 
goods, or 

(b ) the use or intended use of any goods or 
class of goods and the persons by whom such 
goods or class of goods are used or intended to 
be used , or 

(c ) the restrictions imposed upon the trade or 
commerce in any goods or class of goods, or 

( d ) any other circumstances in relation to any 
goods or class of goods , 
it is necessary or expedient in the public interest so 
to do , the Central Government may , by notification 
in the Official Gazette , direct that clause (b ) of sub 
-section ( 2 ) of section 6 , section 9 , section 10 , sec 
tion 12 and section 17 or any of them shall not apply 
or shall apply with such modifications as may be 
specified in the notification , to hire - purchase agree 
ments relating to such goods or class of goods . 


" 4A . Application of Act 1 of 1956. — ( 1 ) Not 
withstanding anything contaired in the Companies 
Act, 1956 , or in the memorandum or articles of 
association of any insurer or in any other ins 
trument, no resolution passed at any meeting of 
the Board of directors or of the members of an 
insurer shall be given effect to unless approved 
by the Central Government. 

( ? ) Subject to the other provisions 
contained in this Act and subject to 
such exceptions , restrictions ar.d limi 
tations, if any, as the Central Govern 
ment may , by notification in the Offi 
cial Gazette, specify in this behalf , 
the Companies Act, 1956 and the Insu 1 of 1956 . 
rance Act shall continue to apply to 
every insurer in the same manner as 
they applied to him before the appoint 
ed day . 

( 3 ) Every notification made by the Central 
Government under sub -section ( 2 ) shall be laid , 
as soon as may be after it is made, before each 
House of Parliament while it is in session for a 
total period of thirty days which may be com 
prised in one session or in two or more successive 
sessions, and if, before the expiry of the session 
immediately following the session or the succes 
sive sessions aforesaid , both Houses agree in 
making any modification in the notification , or 
both Houses agree that the notification should not 
have been made , the notification shall thereafter 
have effect only in such modified form or be 
of no effect, as the case may be; so , however , 
that any such modification or annulment shall be 
without prejudice to the validity of anything pre 
viously done under that notification . 


4B . Custodian or other person to be 
in charge of the management of the 
undertaking of the insurer. — Subject 
to such directions and instructions as 
the Central Government may give 
under this Act , the Custodian , or , 
where no Custodian has been appointed 
in relation to the undertaking of any 
insurer , the person in charge, under 


31. Act not to apply to existing agreements. — This 
Act shall not apply in relation to any hire - purchase 
agreement made before the commencement of this 
Act. 


.. 


: 


... ne ::...... 


24TH AUGUST , 1972 ( BHADRA 2 , 1894 ) 


369 


section 3 , of the management of the 
undertaking of the insurer , shall alone 
be entitled to exercise all the powers 
of management in connection with , or 
incidental to the carrying on or other 
wise of the general insurance business 
of the insurer , whether such powers are 
derived from the Companies Act , 1956 , 
cr from the memorandum or articles 
of association of the insurer or from 
any other source." . 


CHAPTER V 
Reinstatement of qualified persons called 

up for national service 
Sections 

23. Reinstatement. 
24. Preservation of certain rights of qualified persons 

required to render national service, 


1 of 1956 . 


CHAPTER VI 

Other offences and penalties 
25. False statement and forgery . 
26 . General provision as to offences . 
27. Offences by companies . 


CHAPTER VII 
Miscellaneous 


3. Amendment of section 6 . In sub -section ( 2 ) 
of section 6 of the principal Act, 

( a ) in sub - clause ( i) of clause ( A ) , for the 
words " dividend during at least one" , the words 
" dividend for at least one" shall be subsitituted ; 

( b ) in clause ( B ) , for the words " net pre 
mium ir.come of the undertaking of the insurer 

in India ” , the words “ net premium income of 
the undertaking of the insurer in so far as it 
relates to business effected in India " shall be 
substituted . 


28. Information to be furnished by Universities , etc. 
29. Information to be furnished by District Magistrate . 
30. Priority of debts . 
31. Summary trial of offences. 
32. Jurisdiction to try offences. 
33. Protection of action taken in good faith . 
34 , Removal of difficulties . 
35. Power to delegate . 
36. Power to make rules . 
37. Power to make regulations. 
38. Rules and regulations to be laid before Parliament. 


The National Service Act, 1972 


4. Saving . --- The provisions of the Ge 
neral Insurance (Emergency Provisions) 
Act, 1971, as amended by this Act, shall 17 of 1971 
have effect notwithstanding any judge 
menit, decree or order of any Court 
or Tribunal. 


AN 


ACT 


The National Service Act, 1972 


to provide for the registration of qualified persons 

and for the rendering of national service by such 
persons and for matters connected therewith . 
Be it enacted by Parliament in the Twenty -third 
Year of the Republic of India as follows : 


ARRANGEMENT OF SECTIONS 


- 


CHAPTER I 


CHAPTER I 


Preliminary 


1. Short title , extent and commencement . — ( 1 ) 
This Act may be called the National Service Act, 1972, 

( 2 ) It extends to the whole of India . 


Preliminary 
Sections 

1. Short title , extent and commencement. 
2. Definitions. 

CHAPTER II 
Liability of persons to render national service 
3. Liability of persons to be called up for national service. 
4. Valuntary service in lieu of national service . 
5. Liability to complete interrupted service. 
6. Power of Central Government to direct a person to 

render service with the Armed Forces of Union or 

other national service . 
7. Discipline. 
8. Power of Central Government to require any employer 

to release qualified persons. 
9. Transfer . 
10. Persons not to leave national service or be discharged 

therefrom unless permitted by Central Government . 


( 3 ) It shall come into force on such date as the 
Central Government may , by notification , appoint. 


CHAPTER III 
Registration and enlistment for national service 
11. Persons required to register . 
12. Registration . 
13. Notice of likelihood of calling up for national service . 
14. Enlistment for national service . 
15. Salary, wages , etc., and travelling allowances to be 

paid to persons enlisted for national service . 
16. Training 
17. Discharge. 

CHAPTER IV 

Postponement of national service 
18. National Service ( Hardship ) Committee . 
19. Application for postponement on grounds of hardship . 
20. Appeal from decision 

the National Service 
(Hardship ) Committee . 
21. Revocation of postponement certificate . 
22. Suspension of right to postponement of liability to 

be called up for national service . 


2. Definitions. In this Act , unless the context 
otherwise requires , 

( a ) " employer " means any person who employs 
any qualified person for doing any work in any 
establishment and includes any person entrusted 
with the supervision and control of qualified per 
sons in such establishment ; 
( b ) " establishment " means 

( i ) any office, or 

( ii ) any place where any industry , trade, bu 
siness or occupation is carried on , and includes 
any technical institution or training centre ; 

( c ) " national service" means any service which 
is likely to assist the defence of India and civil 
defence or the efficient conduct of military ope 
rations and includes such social service as the 
Central Government may , if it is of opinion that 
it is necesary for public purposes so to do , by 
notification specify in this behalf ; 

( d ) notification " means a notification published 
in the Official Gazette ; 


370 


SERIES 1 No. 21 


( e ) " prescribed ” means prescribed by rules made pleted by him , be equivalent to the term of service 
under this Act ; 

for which persons are liable to serve under this Act . 
( f) " qualified " means a citizen of India who is 

( 3 ) If any qualified person has been enlisted as a 
ordinarily resident in India and who , - 

member of — 
( i ) has obtained a recognised me 

( a ) the Indian Reserye Forces , regu 
dical qualification within the mea 

lated under the Indian Reserve Forces 
ning of the Indian Medical Council 

102 of 1956. Act , 1888 , 

4 of 1888 . 
Act , 1956 , or 
( ii ) has obtained , or has passed an exami 

(b ) the Territorial Army constituted 
nation which entitles him to obtain , a degree of under the Territorial Army Act, 1948 , 56 of 1948 . 
a University or its equivalent qualification in 

(c ) the Air Force Reserve or the 
any branch of engineering or technology or Auxiliary Air Force Reserve constitu 
both , 

ted under the Reserve and Auxiliary 
Air Forces Act , 1952, 

62 of 1952 . 
Explanation . For the purposes of this Act, a 

( d ) the Indian Naval Reserve Forces 
qualified person who is resident in India shall be 

raised and maintained under the Navy 
deemed to be ordinarily resident there unless — 

Act , 1957, or 

62 of 1957. 
( a ) he is residing there only for the purposes 

( e ) any other Force of the foregoing nature , 
of attending a course of education ; or 

(b ) the circumstances of his residence there he shall not be called up , so long as he continues to 
are otherewise such as to show that he is re be a member of that Force, to render national service 
siding there for a temporary purpose only ; or 

under this Act : 
( c ) he, being a person who was born or domi 

Provided that he shall, after he has ceased to be 
ciled in any country outside India , has been resi 

a member of such Force , be liable to render national 
dent in India for less than two years . 

service ( unless he has ceased to be liable under this 

Act to be called up for national service ) , for such 
CHAPTER II 

term as will , together with the actual service ren 
Liability of persons to render national service dered by him as a member of that Force , be equiva 

lent to the term of service for which persons are 
3. Liability of persons to be called up for national 

liable to serve under this Act . 
service . - ( 1) Every person who - 

( a ) is a qualified person at the commencement 5. Liability to completo interrupted service . - If 
of this Act , or 

any qualified person serving in the Armed Forces 
(b ) becomes a qualified person after such com 

of the Union ceases to serve therein before he has 
mencement, 

completed four years of such service , he shall, unless 

he has ceased to be liable under this Act to be called 
shall , if he has not attained the age of thirty years. up for national service , be liable to be called up to 
at such commencement; or , as the case may be , on serve for such term as will , together with the service 
the date on which he becomes a qualified person , be completed by him , be equivalent to the term of ser 
liable until he attains the age of thirty years , to be vice for which persons are liable to serve under 
called up for national service for a period of not this Act . 
more than four years . 

6. Power of Central Government to direct a person 
( 2 ) The period of national service for which a 

to render service with the Armed Forces of Union 
qualified person shall be liable to be called up under 

or other national service . 
this Act shall begin from the date on which he is 

- Subject to the provisions 
required by an enlistment notice served under this of section 3, the Central Government may , by order , 
Act to present himself to the authority specified 

require a qualified person to render service in the 

Armed Forces of the Union or such other national 
therein and shall end on the day when his term of 
national service is completed in accordance with the service , as it may specify in this behalf , for such 
provisions of this Act . 

period and at such place as may be specified in the 

order . 
4. Voluntary service in lieu of national service . -- 
( 1) If a qualified person has been enlisted under any 7. Discipline . ( 1) Every qualified person enlisted 
other law for the time being in force , for service in 

under this Act for national service in the Armed 
one of the Armed Forces of the Union for a period Forces of the Union shall, subject to such conditions 
of not less than four years , he shall perform the as may be prescribed , be bound to serve in any 
service required of the members of that Force in lieu 

branch of the Armed Forces to which he is for the 
of the national service required under this Act. 

time being attached , and shall be subject to all laws, 

rules , regulations and orders in force for the time 
(2 ) If a qualified person has rendered or is render being in relation to such branch . 
ing service, other than service in one of the Armed 
Forces of the Union and such service is declared by ( 2 ) Every qualified person enlisted for any nati 
the Central Government to be equivalent to national onal service , other than service in the Armed Forces 
service, the period of such service shall be deemed of the Union shall, subject to such conditions as may 
to be service in lieu of the national service required be prescribed , be bound to serve in any position or 
under this Act and he shall (unless he has ceased to post to which he is appointed for the time being, and 
be liable under this Act to be called up for national shall be subject to all laws, rules , regulations and 
service ) , be liable to be called up for national service orders in force for the time being in relation to such 
for such term as will , together with the service com position or post . 


... 


te 2THOUTKOV.47 


371 


24TH AUGUST , 1972 ( BHADRA 2 , 1894 ) 


-- 


8. Power of Central Government to require any ment of this Act, to be called up for national service , 
employer to release qualified persons . — ( 1) The make an application , within ninety days from such 
Central Government may ; by order in writing, re commencement, to be registered under this Act. 
quire any employer to release any qualified person 

(2 ) Every qualified person who becomes liable 
for employment in national service within such time 

after the commencement of this Act , to be called up 
as may be specified in the order . 

for national service , shall , within thirty days from 
(2 ) Where an employer releases a qualified person the date on which he becomes so liable , make an 
for employment in national service , such employer application to be registered under this Act. 
shall not be liable to pay the salary , wages and other 
emoluments , if any , of the qualified person for the 12. Registration . ( 1 ) The Central Government 
period during which national service is or has been shall, by general order , direct qualified persons who 
rendered by the qualified person . 

are required to be registered under this Act , 
( 3 ) No contract, subsisting between a qualified (a ) to furnish at such place and time, in such 
person and his employer on the date of release of the manner and to such authority or person as may 
qualified person for employment in national service , be specified therein , such particulars about them 
shall be enforceable until such qualified person has selves as the order may require ; and 
been discharged from national service . 

( b ) to make at such place, in such manner and 
(4 ) In computing the period specified in any con to such authority cr person as may be specified in 
tract of service in relation to a qualified person who the order , an application to be registered under 
has been called upon to render national service , the this Act. 
period of national service actually rendered by such 

( 2 ) The order made under sub -section ( 1 ) may 
qualified person shall be excluded . 

make different provisions in relation to different 
( 5 ) If any employer fails without sufficient cause 

classes of qualified persons subjeat to registration 
to comply with the order made under sub -section ( 1 ) , 

and may provide for exempting from any require 
he shall be liable to be punished with imprisonment ments of the order of any class of qualified persons 
for a term which may extend to three years and also 

with respect to whom the Central Government is 
with fine which may extend to one thousand rupees . 

satisfied that particulars sufficient ficr the purposes 

of this Act can be ascertained otherwise than by 
9. Transfer. The Central Government may , by 

virtue of those requirements . 
regulations , make provisions for enabling or requir 
ing a qualified person rendering national service in ( 3 ) If any qualified person fails to comply with 
any branch of the Armed Forces of the Union to be any requirement of the order made under sub - sec 
transferred to any other branch of that Force or to tion ( 1 ) , he shall be liable to be punished with im 
any other branch of national service or vice versa . prisonment for a term which may extend to three 

years , or with fine which may extend ito cne thousand 
10. Persons not to leave national service or be dis . 

rupees , or with both . 
charged therefrom unless permitted by Central Go 
vernment . — ( 1 ) No qualified 
No qualified person rendering 

(4 ) The Central Government shall ensure — 
national service under this Act shall leave such ser 

( a ) that upon an application duly made for re 
vice until he is discharged therefrom under section 

gistration under this Act, the name and address 
17 . 

cf the applicant together with the particulars of 
( 2 ) No qualified person who has been served with the matters with respect to which infcrmation was 
a notice under sub -section ( 1 ) of section 13 or an given by the applicant in pursuance of the order 
enlistment notice under section 14 shall, if he is in 

made under sub -section ( 1) are entered in a regis 
any employment at the date of service of such notice , ter kept for the purposes of this Act , to be known 
leave such employment or be discharged therefrom , 

as the " National Service Register " ; and 
except in accordance with the provisions of this Act . 

(b ) that upon the applicant being registered , a 
Provided that nothing in this sub -section shall certificate of registration is issued to the appli 
apply where the employment of a qualified person cant in the prescribed form . 
is terminated for the reason that the said person has 

(5 ) The information contained in the National 
been guilty of gross insubordination , habitual ab 
sence from work , or serious misconduct or has been 

Service Register shall not be used for any purpose 
convicted of an offence . 

other than the purposes of this Act : 
( 3 ) If a qualified person who has been served with Provided that nothing in this sub - seotion shall pre 
a notice under sub - section ( 1 ) of section 13 or an clude the Central Government from disclosing , for 
enlistment notice under section 14 leaves any employ 

statistical purposes , any infcrmation contained in 
ment in which he is engaged at the date cf service the National Service Register . 
of such notice or es discharged therefrcm otherwise 
than in accordance with the provisions of this Act , (6 ) The Central Government may cause registra 
he or , as the case may be , the person by whom he tion to be made of , and a certificate of registration 
is discharged , shall be punished with imprisonment to be issued to , any qualified person of a class exemp 
for a term which may extend to five years and also ted from any of the requirements of sub - section ( 1 ) 
with fine which may extend to two thousand rupees . as if that persen had duly applied to be registered 

under this Act . 
CHAPTER III 
Registration and Enlistment for National Service 

( 7 ) ( a ) If any qualified person subject to regis 

tration under this Act communicates to the Central 
11. Persons required to register. — ( 1 ) Every qua 

Government in the prescribed manner , that he has a 
lified person shall, if he is liable, at the commence preference for the Army, Air Force or Naval Ser 


...w .. 


372 


SERIES 1. No. 21 


(4 ) The Central Government may make regula 
tions for the examination of the physical and mental 
fitness of persons subject; to registration under this 
Act and such regulations may , in particular , enable 
the medical and other authority - 

( a ) in case where he is unable to complete 
the examination on one occasion , to direct the 
persons examined to submit himself for a further 
examination on a specified time and place ; 

(b ) to direct the person examined to submit 
himself for examination by a specialist. · 

(5 ) The Central Government may by regulations 
determine the categories in which persons under this 
section are to be placed with reference to their phy 
sical and mental condition . 


vice, that fact shall be recorded in the Naticnal Ser 
vice Register . 

(b ) If a qualified person belonging to a class which 
is exempted from registration under this Act has a 
preference for the Army, Air Force or Naval Ser 
vice , he shall intimate such preference to the Central 
Government in such manner as that Government may 
specify and , on receipt of such intimation , the Cen 
tral Government shall cause such preference to be 
recorded in the National Service Register . 

( 8 ) ( a ) If any change occurs in the name or ad 
ress of any qualified person while such person rema 
ins registered under this Act , or if any such person 
acquires any additional academic cr professional 
qualificaticn or distinction , he shall forthwith com 
municate the change of his name or address , or, as 
the case may be, the acquisition by him of additional 
academic or prcfessional qualification or distinction 
to the Central Government in the prescribed manner 
and ait the same time return to the Central Govern 
ment , for correction , any certificate of registration 
held by him and if he fails to communicate the 
change cf his name or address , or , as the case may 
be , the acquisition by him of the additional academic 
or professional qualification or distinction, he shall 
be liable to be punished with fine which may extend 
to five hundred rupees . 

( 6 ) Upon the receipt of a communication of the 
change of name or address of any qualified person 
registered under this Act or of acquisition by him of 
additional academic or professicnal qualification or 
distinction , the Central Government shall cause the 
necessary corrections to be made in the entries in 
the National Service Register and shall either cause 
the certificate to be corrected and returned to such 
perscn or cause a fresh certificate to be issued to 
him . 


(6 ) If any qualified perscn fails to comply with 
the requirements of a notice served on him under 
sub -section ( 3 ) or any regulationsmade or directions 
given urder sub -section ( 4 ) , he shall be liable to be 
punished with imprisonment for a term which may 
extend to three years , or with fine which may extend 
to one thousand rupees , cr with both . 

( 7 ) The court by which a qualified person is con 
victed of an offence under this section may , without 
prejudice to any penalty which may be imposed on 
him , order him to submit himself to an examination 
of his physical and mental fitness , further examina 
tion or examination by a specialist , as the case may 
be, at such placs and at such time as may be fixed 
by the court and any such order may provide that 
such person shall be detained in custody until that 
time and shall be taken by a police officer to that 
place and at that time: 

Provided that no person shall be detained in cus 
tody by virtue of any such order for more than 
twenty - four hours. 


( 9 ) The Central Government may, by rules made 
under this Act, provide for the issue, in specified cir 
cumstances , of fresh certificates of registration in 
place of certificates which have been lost , destroyed 
or defaced . 


13. Notice of likelihood of calling up for national 
service . - ( 1 ) The Central Government may from 
time to time cause to be served on any qualified 
person subject to registration under this Act, and , 
if he is engaged in any employment, also on his em 
ployer , a written notice in the prescribed form stating 
that such person is likely ito be called upon , at any 
time within a period of twelve months next follow 
ing , to render national service . 

( 2 ) Omission to serve any notice referred to in 
sub -section ( 1 ) on an employer or the service of 
such notice on a person who is not , at the time of 
service of such notice, the employer of the qualified 
person concerned shall not invalidate the notice ser 
ved under sub -section ( 1 ) on the qualified person 
and shall not affect the liability of the qualified per 
son to be called up for national service . 

( 3 ) The Central Government may cause to be 
served , on any qualified person served with a notice 
referred to in sub - section ( 1 ) , a written notice re 
quiring that person to submit to an examination , by 
such authority , at such place and at such time, as 
may be specified in the notice , of his physical and 
mental fitness for being called up for national 
service . 


(8 ) A qualified person who , having been ordered 
by a court under sub - section ( 7 ) to submit himself 
to an examination of his physical and mental fitness 
and to be detained in custody , is taken by a police 
officer to the place and at the time at which he is to 
be examined , does not submit himself to an exami 
nation of his physical and mental fitness in ac 
cordance with the order , he may be arrested by that 
or any other police officer without a warrant. 

( 9 ) A qualified person , who fails to submit himself 
to an examination of his physical and mental fitness 
in accordance with an order made under sub - sec 
tion ( 7 ) , shall be liable to be punished with impri 
sonment for a term which may extend to three years , 
and also with fine which may extend to one thousand 
rupees. 

( 10 ) A notice served on any qualified person under 
this section shall csass to have effect if , before that 
date on which he is required to submit himself to 
an examination of his physical and mental fitness , 
he ceases to be subject to registration under this 
Act. 


( 11 ) The Central Government may pay to the 
medical or other authority , specialist , or any quali 
fied person undergoing examination of his physical 
and mental fitness under this section such travelling 
and other allowances , includir.ig compensation for loss 
of remunerative time, in accordance with such scales 
as may be prescribed . 


2 


TXAPRO peger poco 


CORE ARIAS 


24TH AUGUST , 1972 ( BHADRA 2 , 1894 ) 


373 


2 


( 3 ) A qualified person who, on the date of the ser 
vice of the enlistment notice on him , is engaged in 
any employment, or a qualified person who is trans 
ferred from one form of national service , or from 
one place of employment in the national service , to 
another, shall be paid , for the period of his transit 
from the place of his former employment to the 
place of his employment under this Act, salary or 
wages ( including allowances ) at the rate fixed by 
the Central Government under sub - section ( 1 ) . 

(4 ) A qualified person who was in any employ 
ment , on the date on which he was called up for 
national service under this Act , shall, on his dis 
charge from such service , be paid salary or wages 
(including allowances ) for the period of his transit 
from the place of his employment under this Act to 
the place of his former employment at the rate fixed 
by the Central Government under sub -section ( 1 ) . 

( 5 ) A qualified person who is called up for na 
tional service under this Act shall, on the termina 
tion of his national service , be paid travelling expen 
ses at such rate as may be prescribed , for journey 
to the place of his former employment, or , if he was 
unemployed when he was first called up for national 
service under this Act, to the place of his residence . 


16. Training. During his term of national ser 
vice a qualified person may be required to undergo 
training for such period as may be prescribed . 


14. Enlistment for national service . -- ( 1 ) Subject 
to such priorities as may be prescribed , the Central 
Government may cause to be served on any qualified 
person for the time being liable under this Act to 
be called up for national service , who has been found , 
after an examination of his physical and mental con 
dition , fit for such service , a written notice in the 
prescribed form (in this Act referred to as the 
" enlistment notice" ) stating that he is called up for 
national service in such one of the Armed Forces 
of the Union or in such other service as may be 
specified in the enlistment notice and requiring him 
to present himself at such place and at such time 
and to such authority , as may be specified in the 
notice : 

Provided that an enlistment notice under this sec 
tion shall not require the person upon whom it is 
served to present himself on a day earlier than the 
fourteenth day after the date of service of the notice 
or such earlier day as may be determined at his 
request. 

( 2 ) An enlistment notice served on any qualified 
person shall cease to have effect if , before the day 
on which he is thereby required to present himself, 
he ceases to be liable to be called up for national 
service under this Act . 

(3 ) The Central Government may pay to persons 
required to present themselves in pursuance of an 
enilstment notice served upon them travelling and 
other allowances in accordance with such scales as 
may be prescribed . 

( 4 ) If on the day specified in the enlistment notice 
as the day on which the person to whom the notice 
relates is required to present himself for national 
service - 

(a ) a postponement certificate relating to him 
is in force, or 

( 5 ) any appeal or application by him for post 
ponement of national service is pending, 
the enlistment notice served on him shall be of no 
effect. 

(5 ) The enlistment notice shall be served in such 
manner as may be prescribed . 

15. Salary , wages , etc., and travelling allowances 
to be paid to persons enlisted for national service . - 
( 1 ) Every qualified person who is called up for 
national service under this Act , or who is trans 
ferred from one form of national service to another , 
shall be paid such salary , wages, allowances , pension , 
disability and death compensations and other bene 
fits as may be prescribed : 

Provided that such payments shall be on scales 
not less favourable than those admissible to persons 
of like qualifications, experience and length of 
service in similar positions under the Government. 

Explanation . - For the purposes of the foregoing 
proviso , the length of standing of a qualified person 
as an engineer or medical practitioner , as the case 
may be, shall be construed as the length of his ser 
vice . 

( 2 ) Any qualified person who is called up for 
national service or transferred from one form of 
national service, or from one place of employment 
in the national service , to another , shall be paid 
travelling allowance for journey to his place of em 
ployment under this Act at such rate as may be 
prescribed . 


17. Discharge . — ( 1 ) Every qualified person enlis 
ted under this Act shall be entitled to receive his 
discharge from national service on the expiration 
of the period for which he was enlisted and such 
person may , prior to the expiration of that period , 
be discharged from national service by such autho 
rity and subject to such conditions as may be prest 
cribed . 

(2 ) A person receiving discharge under this sec 
tion shall be given a certificate in such form as may 
be prescribed certifying that he has been discharged 
from national service . 

( 3 ) A person who has received discharge under 
this section shall not be required to render national 
service after such discharge : 

Provided that a person who has received discharge 
under this section before he has completed four 
years of national service, shall , unless he has ceased 
to be liable to be called up for national service under 
this Act, be liable to be called up for national service 
under this Act for such term as will, together with 
the period of national service rendered by him , be 
equivalent to four years . 


CHAPTER IV 


Postponement of National Service 


a 


18. National Service (Hardship ) Committee.-- ( 1 ) 
The Central Government shall constitute a National 
Service (Hardship ) Committee consisting of 
Chairman and two other members appointed by it . 

( 2 ) The Chairman of the National Service ( Hard 
ship ) Committee shall be a person who is , or has 
been , or is qualified to be, a Judge of a High Court. 

( 3 ) The members of the National Service (Hard 
ship ) Committee shall hold office for a period of three 
years but shall be eligible for reappointment. 


1 . --- ... ---- 
.................. 


374 


SERIES I No. 21 


(4 ) The proceedings of the National Service the hearing of an application for the grant or re 
(Hardship ) Committee shall not be invalid by rea newal of a postponement certificate and as to the 
son of any defect in the constitution of , or any va period for which the postponement certificate may 
cancy in , such Committee . 

be granted or renewed . 
( 5 ) Any vacancy in the National Service (Hard ( 5 ) The National Service (Hardship ) Committee 
ship ) Committee shall be filled by the Central Go may, after consideration of the application for a 
vernment in such manner as it may think fit . postponement certificate or renewal thereof, grant 

or reject the same. 
(6 ) The Central Government may constitute Re 
gional National Service (Hardship ) Committees for (6 ) The period within which the postponement cer 
such regions as it may think fit and on such cons tificate is in force shall be added to the period during 
titution such Regional National Service (Hardship ) which the person to whom the , certificate was 
Committees shall have all the powers , functions and granted is liable under this Act to be called up for 
privileges of the National Service (Hardship ) Com national service and accordingly this Act shall in 
mittee and shall be subject to the same provisions 

relation to that person have effect as if for reference 
as are applicable to that Committee . 

therein to the age of thirty years , there were subs 

tituted , an age being the sum of thirty years and the 
( 7) The National Service (Hardship ) 

period during which - 
Committee shall have power to regulate 
its own procedure with regard to any 

( i) the postponement certificate is in force , and 
investigation under this Act and shall 

( i ) the enlistment notice was of no effect by 
have for the purposes of such investiga 

reason of the provisions of clause (b ) of sub 
tion the powers of a civil court while 

-section ( 1 ) of section 14 . 
trying a suit under the Code of Civil 

( 7 ) If any qualified person or an employer makes 
Procedure , 1908 , in respect of the follow 5 of 1908 . 

an application for a postponement certificate on a 
ing matters, namely : — 

ground which he kriows to be false or does not be 
( a ) summoning and enforcing the attendance of lieve to be true or on a ground which , in the opinion 
any person and examining him on oath ; 

of the National Service (Hardship ) Committee, is fri 
(b ) requiring the discovery and production of volous , he shall be liable to be punished with impri 
documents producible as evidence ; 

sonment for a term which may extend to one year , 
( c ) receiving evidence on oath ; 

or with fine which may extend to one thousand 
( d ) issuing commissions for the examination of 

rupees , or with both . 
witnesses or documents ; 

20. Appeal from decision of the National Service 
( e ) such other matters as may be prescribed . 

(Hardship ) Committee . -- ( 1) Subject to the provi 
19. Application for postponement on grounds of 

sions of sub -section ( 2 ) , an appeal shall lie against 
hardship . --- ( 1 ) Any qualified person who is for 

the decision of the National Service (Hardship ) 
the time being liable to be called up for national 

Committee to the High Court exercising jurisdiction 
service under this Act and who has been served with 

in relation to the territory in which the applicant 
a notice referred to in sub -section ( 1 ) of section 13 , 

for the postponement certificate voluntarily resides , 
or any employer of such qualified person , may apply , 

carries on business or personally works for gain . 
in the prescribed manner to the Central Government ( 2 ) No appeal referred to in sub - section ( 1 ) shall 
for a certificate of postponement of liability to be lie unless - 
called up for national service on the ground that 

( i) it is preferred within thirty days from the 
exceptional hardship would ensue if such qualified 

date of the decision of the National Service 
person were called up for national service , and may, (Hardship ) Committee , and 
on that ground apply , in the prescribed manner , for ( ii ) the National Service (Hardship ) Committee 
the renewal of the postponement certificate granted certifies that the case involves a substantial ques 
to him , 

tion: of law . 
( 2 ) Where an application for a postponement ( 3 ) Where the National Service (Hardship ) Com 
certificate or for the renewal thereof is made, the mittee has refused to give a certificate referred to 
Central Government shall refer the application for in sub -section ( 2 ) , the High Court may , if it is 
decision to the National Service (Hardship ) Com satisfied that the case involves a substantial question 
mittee . 

of law , granit special leave to appeal against the 
( 3 ) No application for the grant of a postponie 

decision of the National Service (Hardship ) Com 
ment certificate shall be referred by the Central Go 

mittee . 
vernment to the National Service (Hardship ) Com ( 4 ) The High Court may , after hearing the appeal, 
mittee unless such application is made within sixty confirm , mod fy or reverse the decision of the Na 
days from the date of service of the notice referred tional Service (Hardship ) Committee . 
to in sub - section ( 1 ) of section 13 : 
Provided that the Central Government may refer an 

21. Revocation of postponement certificate . ( 1 ) 
application for the grant of a postponement certi 

If, at any time, while a postponement certificate is 
ficate to the National Service (Hardship ) Committee 

in force, it appears to the Central Government that, 
made after the expiry of the said period if it is satis 

by reason of any change in the circumstances of the 
fied , having regard to the grounds on which the appli 

qualified person to whom the certificate was granted 

or of his employer , where such certificate was 
cation is made , that the making thereof has not 
unreasonably delayed . 

granted on the application of such employer, the 

certificate ought to be revoked or the period for 
( 4 ) Te Central Government may by regulations which it was granted or last renewed ought to be 
specify the principles to be applied and the circums shortened , the Central Government may apply to 
tances to which regard is to be or not to be had for the National Service (Hardship ) Committee , and that 


24TH AUGUST, 1972 ( BHADRA 2 , 1894 ) 


375 


Committee may either reject the application or cancel 
the certificate or vary it by shortening the period . 

( 2 ) Where an application is made under sub - sec 
tion ( 1) , the person to whom the postponement certi 
ficate in question was granted , and where such certi 
ficate was granted on the application of an employer , 
such employer , shall be entitled to be heard on the 
application and the provisions as to appeals.con-. 
tained in section 20 shall apply in relation to the 
application as if it were an application for the grant 
of a postponement certificate . 

22. Suspension of right to postponement of liabi 
lity to be called up for national service . — ( 1 ) The 
Central Government may , if it is satisfied at any 
time that by reason of the gravity of the situation : 
it is necessary so to do , by order 

( a ) cancel, either generally or in relation to a 
specified class of qualified persone , all postpone 
ment certificates in force at the date of the order , 
and 

( b ) abrogate, either generally or in relation to 
a specified class of qualified persons, any right to 
apply for the grant of a postponement certificate 
and any right to appeal from the refusal to grant 
such a certificate, and may , by order , vary or 
revoke any order in force under this section , with 
out prejudice however to the previous effect of 
that order . 

( 2 ) Where , on the day on which an order comes 
into force under this section abrogating any right 
to appeal from the refusal to grant a postponement 
certificate , an appeal preferred by a person to whom 
the order applies or the time for preferring such 
appeal by such person has not expired , the appeal 
shall be deemed to be dismissed or the time shall be 
deemed to expire on the expiry of that day . 


C 


circumstances have so changed as to make it impos 
sible or unreasonable for him to do so , or denies his 
liability to reinstate such former employee , or re 
presents that the reinstatement by him of the former 
employee is impracticable , he shall , before the expiry 
of a period of fifteen days from the date of receipt 
of such application , make an application to the Nati 
onal Service (Hardship ) Committee for relieving him 
from the obligation referred to in sub - section ( 2 ) . 

(b ) A former employee, who is not reinstated in 
his former employment within fifteen days from the 
date of delivery of the application made under sub 
-section ( 2 ) , may , within a further period of fifteen 
days ( computed from the date on which the first 
-mentioned period of fifteen days expires ), represent 
to the National Service (Hardship ) Committee that 
his former employer has not discharged the obliga 
tion imposed on him by sub - section (2 ) . 

(C ) On receipt of the application referred to in 
çiause (a ) or the representation referred to in clause 
( b ) , the National Service ( Hardship ) Committee 
shall , after considering all matters placed before it 
and after making such inquiry in the matter as it 
may think fit , make an order 

( i) relieving the former employer from the obli 
gation referred to in sub - section ( 2 ) , or 

( ii) requiring the former employer to reinstate 
the former employee in his former employment, or 

(ii) requiring the former employer to pay to 
the former employee by way of compensation , for 
failure or inability to reinstate him , a sum not 
exceeding an amount equal to six months remu 
neration at the rate at which remuneration was 
last payable by the former employer to the for 
mer employee . 

( d ) Where the National Service (Hardship ) Com 
mittee has directed the reinstatement of any person 
in his former employment , the former employer shall 
be under an obligation to pay to such person salary 
and allowances at the rates specified by the National 
Service (Hardship ) Committee from the date of re 
ceipt of the application referred to in sub - section ( 2 ) . 

( 4 ) ( a ) A former employer, who has refused to 
reinstate his former employee on any of the grounds 
specified in sub -section (3 ) and who has omitted or 
failed , without any reasonable excuse , to make an 
application to the National Service (Hardship ) Com 
mittee within the time specified in sub - section ( 3 ) , 
shall be punished , without any prejudice to the pro 
visions of clause (b ) of this sub -section , with impri 
sonment for a term which may extend to one month , 
or with fine which may extend to five thousand 
rupees , or with both . 

( b ) If any former employer fails to obey any order 
made by the National Service (Hardship ) Committee 
under sub -section ( 3 ) , he shall be punished with 
imprisonment for a term which may extend to one 
month , or with fine which may extend to five 
thousand rupees, or with both , and the court by 
which such former employer is convicted under this 
gub -section shall order him to pay to the person 
whom he has failed to re -employ , a sum not exceed 
ing an amount equal to six months remuneration at 
the rate at which his last remunaration was payable 
to him by the former employer and any amount so 
required to be paid shall be recoverable as if it were 
a fine imposed by such court . 

(5 ) Where in pursuance of the provisions of sub 
-section ( 2 ) a former employer reinstates his former 


CHAPTER V 
Reinstatement of qualified persons called up for 

National Service 
23. Reinstatement. -- ( 1 ) In this section , -- 

( a ) " former employee " means a qualified person 
who was released by an employer for employment 
in national service ; 

(6 ) " former employer " means the employer by 
whom a former employee was employed in an esta 
blishment immediately before the enlistment of 
such employee for national service ; 

( c ) " former employment” means the employ 
ment in which the former employee was employed 
immediately before his enlistment for national 
service. 

( 2 ) ( a ) A former employee may , on the termina 
tion of his national service , make an application in 
such manner and within such period as may be pres 
cribed to his former employer for reinstatement in 
his former employment . 

(b ) On receipt of an application referred to in 
clause ( a ) , the former employer shall be under an 
obligation ( unless the employment of the former em 
ployee in the national service was terminated by dis 
missal for misconduct ) to reinstate such employee 
before the expiry of a period of fifteen days from 
the date of receipt of such application . 

(3 ) (a ) If , on receipt of an application referred 
to in sub - section ( 2 ) , the former employer refuses 
to reinstate the applicant on the ground that his 


CORO 


376 


SERIES I No. 21 


. 


employee and thereafter terminates the employment 
of such former employee at any time within a period 
of six months from the date of such reinstatement , 
the former employer shall, notwithstanding anything 
to the contrary contained in the conditions of em 
ployment of the former employee , be liable to pay 
to the former employee , at the time of terminating 
his employment as aforesaid , a sum equal to the re 
muneration which the former employee would have 
earned under the terms and conditions of his re -emi 
ployment for the unexpired portion of the said 
period of six months : 

Provided that a former employer shall not be liable 
to make such payment as aforesaid where the em 
ployment of the former employee is terminated for 
the reason that the former employee has been guilty 
of gross insubordination , habitual absence from work 
or any serious misconduct or has been convicted of 
any offence : 

Provided further that a former employee whose 
employment is terminated within the said period for 
any such reason as aforesaid may refer the matter 
to the National Service (Hardship ) Committee and 
that Committee shall , after due consideration , decide 
whether or not the employer is liable as aforesaid 
under this sub - section ; and any such decision shall 
be final and binding on the parties . 

Explanation . - Any sum required to be paid under 
this sub - section shall be in addition to the amount , 
if any , which the employer may , under the conditions 
of employment be liable to pay in respect of the ter 
mination of the employment of the former employee 
without notice . 

(6 ) No change in the name, constitution or 
character of the former employer shall affect the 
right of reinstatement of a former employee who has 
been released from employment in national service . 

( 7 ) ( a ) The occupation in which and the terms 
and conditions under which a qualified person may 
be reinstated after completion of national service 
shall not be less favourable to him than those which 
would have been applicable to him had his employ 
ment not been interrupted by reason of his being 
called up for national service . 

(b ) In determining the terms and conditions of 
reinstatement of the former employee , regard shall 
be had to the additional skill and experience acquired 
by such employee in the course of his employment 
in the national service . 


ponement certificate is in force or no application 
or appeal for postponement of national service is 
pending , fails or omits to render the service which 
he is required by such notice to render , or 

( b ) having commenced to render national ser 
vice, leaves that service without obtaining a dis 

charge under section 17 , 
he shall be punished with imprisonment for a term 
which may extend to five years and also with fine 
which may extend to two thousand rupees . 
( 2 ) Any person who 

( a ) in giving any information for the purposes 
of this Act , knowingly or recklessly makes a sta 
itement which is false in material particulars or 
which he does not believe to be true, or 

( b ) ( i) with the intention of deceiving , forges or 
uses or lends or allows to be used for any person 
any certificate issued under this Act, or 

( ii ) makes , or has in his possession , any docu 
ment so closely resembling any certificate so is 

sued as to be calculated to deceive , 
shall be punished with imprisonment for a term not 
exceeding three years , or with fine not exceeding one 
thousand rupees , or with both . 


26. General provision as to offences . -- Any qua 
lified person who contravenes any provision of this 
Act for the contravention of which no penalty is 
separately specified in this Act, shall be punished 
with fine which may extend to five hundred rupees : 

Provided that in any proceedings for an offence 
punishable under this section , it shall be a defence 
for the accused to prove that he was prevented from 
complying with the provisions of this Act by circum 
stances beyond his control. 


24. Preservation of certain rights of qualified per 
sons required to render national service . While 
any qualified person , required to render national 
service under this Act , has any righits under any 
provident fund or other scheme for the benefit of 
employees maintained in connection with the em 
polyment he relinquishes, he shall continue , so long 
as he is engaged in national service and if he is 
reinstated , until such reinstatement under the pro 
visions of this Act , to have in respect of such fund 
or scheme such rights as may be prescribed . 


27. Offences by companies . — ( 1 ) Where any pro 
vision of this Act or of any order made thereunder is 
contravened by a company , every person who at the 
time the contravention was made was in charge of , 
and was responsible to , the company for the con 
duct of the business of the company as well as the 
company, shall be deemed to be guilty of the contra 
vention and shall be liable to be proceeded against 
and punished accordingly : 

Provided that nothing contained in this sub -sec 
tion shall render any such person liable to any pu 
nishment, if he proves that the offence was com 
mitted without his knowledge or that he had exer 
cised all due diligence to prevent the commission of 
such offence . 

(2 ) Notwithstanding anything contained in sub 
-section ( 1 ) , where any such offence has been com 
mitted and it is proved that the offence has been 
committed with the consent or connivance, or is attri 
butable to , any neglect on the part of, any director , 
manager , secretary or cither officer of the company , 
such director , manager , secretary or other officer 
shall be deemed to be guilty of that offence and shall 
be liable to be proceeded against and punished accor 
dingly . 
Explanation . ---- For the purposes of this section – 

( a ) " company" means any body corporate and 
includes a firm or other association of individuals ; 
and 

(6 ) " director " , in relation to a firm , means a 
partner in the firm . 


CHAPTER VI 

Other offences and penalties 
25. False statement and forgery.-- ( 1) If any 
qualified person — 

( a ) on whom an enlistment notice has been ser 
ved under this Act and in respect of whom no post 


1 


............... 


... 


24TH AUGUST , 1972 ( BHADRA 2 , 1894 ) 


377 


CHAPTER VII 

35. Powers to delegate. The CentralGovernment 

may , by notification , direct that all or any of the 
Miscellaneous 

powers which may be exercised by it under this Act 
28. Information to be furnished by Universities , shall , in such circumstances and under such condi 
etc. - It shall be the duty of every University or tions , if any, as may be specified in the notification , 

be exercised also by any State Government or any 
other persons having the management of any Uni 
versity , school or other educational institution , to other authority owned or controlled by the Central 

Government . 
give to the Central Government, at its request, such 
information in their possession , or reasonably avai 

36. Power to make rules . ( 1 ) The Central Go 
lable to them , about persons receiving , or who have 

vernment may, by notification , make rules for carry 
received education in engineering, technology, medi 

ing out the purposes of this Act . 
cal sciences cr surgery as the Central Government 
may , by notification , specify in this behalf . 

( 2 ) In particular and without prejudice to the 

generality of the foregoing power , such rules may 
29. Information to be furnished by District Magis 

provide for all or any of the following matters , 
trate . - It shall be the duty of every District Magis 

namely : 
trate to give to tihe State Government such informa 
tion in his possession about qualified persons within ( a ) the principles governing the calling up of 
the local limits of his jurisdiction as may be pres persons for national service ; 
cribed , and it shall be the duty of every State Go 

( b ) the form and contents of the National Ser 
vernment to give to the Central Government all in 

vice Register ; 
formation in its possession about qualified persons 

( c ) the form in which the certificate of regis 
in the State . 

tration is to be issued ; 
30. Priority of debts . Notwithstand 

( d ) the manner of notification of preference 
ing anything contained in the Presidency 

for any branch of the Armed Forces of the Union ; 

3 of 1909 . 
Towns Insolvency Act , 1909 , the Provin 

5 of 1920 . 

( e ) the manner of notification of change of 
cial Insolvency Act, 1920 , ithe Companies 

1 of 1956 . name or address of , or acquisition of academic or 
Act, 1956 , or the Partnership Act, 1932 , 

9 of 1932 . 
any compensation payable under this Act 

professional qualification or distinctions by , a qua 
shall have priority over all other unse 

lified person registered under this Act ; 
cured debts . 

( f) the circumstances under which fresh certi 

ficate of registration in place of certificates which 
31. Summary trial of offences . — Not 

have been lost, destroyed or defaced may be 
withstanding anything contained in the 

issued ; 
Code of Criminal Procedure , 1898 , every 

5 of 1898 . 

( g ) the form and contents of the notice for 
offence punishable under this Act shall be 
tried summarily . 

examination of physical and mental fitness ; 

( h ) the scale in accordance with which travelling 
32. Jurisdiction to try offences. -No court infe and other allowances may be paid to medical or 
ricr to that of a Presidency Magistrate or a Magis other authority or specialist or to any qualified 
trate of the first class shall try any offence punish person undergoing any examination of physical 
able under this Act. 

and mental fitness and the scale according to 

which compensation may be paid for loss of remu 
33. Protection of action taken in good faith . - ( 1 ) nerative time; 
No suit , prosecution or other legal proceeding shall 

( i ) the priorities in accordance with which qua 
lie against any person for anything which is in gocd 
faith done or intended to be done in pursuance of 

fied persons may be enlisted for national service ; 
this Act or any rules , regulations or crders made ( i) the form and contents of the en :listment 
thereunder . 

notice and the manner of service thereof ; 
( 2 ) No suit or other legal proceeding shall lie aga 

( k ) the scales of salary , wages, allowances, pen 
inst the Central Government for any damage caused 

sions , disability and death compensation and other 
or likely to be caused for anything which is in good 

financial benefits admissible to those performing 
faith done or intended to be done in pursuance of 

national service ; 
this Act or any rules , regulations or orders made ( 1) the scales of travelling allowances required 
thereunder . 

to be paid under this Act ; 
34. Removal of difficulties . — ( 1 ) If any difficulty 

( m ) the authority , by which and conditions sub 
arises in giving effect to the provision of this Act , 

ject to which prior discharge from national service 
the Central Government may make such order , not 

may be made ; 
inconsistent with the provision of this Act as may ( n ) the form of discharge certificate ; 
appear to it to be necessary for the purpose of remo 

( ) the manner of application for a certificate 
ving the difficulty : 

of postponement of liability to be called up for 
Provided that no order shall be made under this 

national service or for renewal thereof and the 
sub - section after the expiry of a period of two years 

time within which such application for renewal 
from the commencement of this Act. 

should be made ; 
( 2 ) Every order made under sub - section ( 1 ) shall 

( p ) the conditions of reinstatement of persons 
be laid before both Houses of Parliament as soon as 

released from employment in the national service 

and matters connected therewith ; 
may be after it is made and the provisions of sec 
tion 38 shall apply to such order as if it were a rule ( q ) further inquiry which may be made by the 
made under this Act . 

National Service (Hardship ) Committee where 


1 


C 


* 


hone 


MEDIAS 


PROCESSEN 


.... nu 2 

Menurut 


378 


SERIES I No. 21 


The Constitution (Twenty-ninth Amendment ) Act, 1972 


AN 
АСТ 


further to amend the Constitution of India . 


Be it enacted by Parliament in the Twenty - third 
Year of the Republic of India as follows : -- 


reinstatement of qualified persons released from 
employment in the national service is refused or 
denied or where such reinstatement is represented 
to be impracticable ; 

( r ) the preservation of rights of provident fund , 
etc., of qualified persons rendering national ser 
vice ; 

( s ) the information relating to qualified persons 
which every District Magistrate shall furnish to 
the State Government ; 

( t) any other matter which is required to be, 
or may be, prescribed under this Act. 

( 3 ) Any rule made under this Act may provide 
that a contravention of the rule shall be punished 
with imprisonment for a term not exceeding six 
months, or with fine not exceeding one thousand 
rupees , or with both . 


1. Short title . This Act may be called the Cons 
titution ( Twenty - ninth Amendment) Act, 1972 . 


2. Amendment of Ninth Schedule . -- . In the Ninth 
Schedule to the Constitution , after entry 64 and 
before the Explanation , the following entries shall 
be inserted , namely : — 

" 65. The Kerala Land Reforms ( Amendment) 
Act , 1969 (Kerala Act 35 of 1969 ) . 

66. The Kerala Land Reforms (Amendment ) 
Act , 1971 (Kerala Act 25 of 1971 ) ." . 


Labour and Information Department 


Mormugao Port Trust 


Notification 


37. Power to make regulations. The Central 
Government may make regulations not inconsistent 
with this Act, to provide for all or any of the follow 
ing matters , namely : 

( a ) enabling or requiring a qualified person to be 
transferred to any branch of the Armed Forces of 
the Union or to any other branch of national 
service ; 

( b ) examination of physical and mental fitness 
of qualified persons subject to registration under 
this Act ; 

( 0 ) determination of the categories in which 
qualified persons whose physical and mental fit 
ness has been examined shall be placed by refe 
rence to their physical or mental conditions or 
both ; 

( d ) specification of the principles to be applied 
and the circumstances to be considered while 
hearing an application for the grant or renewal 
of a postponement certficate ; 

( e ) specification of the period for which a post 
ponement certificate may be granted or renewed ; 

( f ) any other matter for which regulations are 
required to be , or may be , made under this Act . 


MPTYIGA ( 16 ) / 72 
As required under Section 124 ( 2 ) of the Major 
Port Trusts Act, 1963 the following amendments to 
the Mormugao Port Employees (General Provident 
Fund ) Regulations, 1964 and the Mormugao Port 
Employees ( Contributory Provident Fund ) Regula 
tions , 1965 adopted by the Board of Trustees are 
hereby published : - 

I Introduce the following note below Regulation 
12 ( 1 ) of the Mormugao Port Employees (General 
Provident Fund ) Regulations, 1965 . 

“ Note : 

The power of the Board to sanction the 
transfer of the Provident Fund balances to the 
Provident Fund Account of the employees in 
the Port may be exercised by the Chairman ." 


38. Rules and regulations to be laid before Par 
liament . — Every rule and every regulation made 
by the Central Government under this Act shall be 
laid , as soon as may be after it is made , before each 
House of Parliament, while it is in session , for a 
total period of thirty days which may be comprised 
in one session or in two or more successive sessions , 
and if, before the expiry of the session immediately 
following the session or the successive sessions afore 
aid , both Houses agree in making any modification 
to the rule or regulation or both Houses agree that 
the rule or regulation should not be made, the rule or 
regulation shall thereafter have effect only in such 
modified form or be of no effect, as the case may be ; 
So , however , that any such modification or annulment 
shall be without prejudice to the validity of anything 
previously done under that rule or regulation . 


II Introduce the following note below Regulation 
4 ( 2 ) of the Mormugao Port Employees ( Contribu 
tory Provident Fund ) Regulations, 1965 . 

" Note : 

The power of the Board to sanction the 
transfer of the Provident Fund balances to the 
Provident Fund Account of the employees in 
the Port may be exercised by the Chairman ." . 


By order , 


M. J. Kurian 
Deputy Secretary 


Mormugao, 5th June, 1972 . 


GOVT . PRINTING PRESS GOA 
( Imprensa Nacional — Goa ) 

PRICE – Rs. 1-20 Ps. 


REA ............. 


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